jiggly
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Livermore said:
yes it would give me a higher probability of not getting stopped out but 6 ticks per trade is the maximum i can risk on the smallest position, i allow myself a daily limit of 25 ticks, so thats 4 bad trades and im out or upto 8 consecutive bad trades and end the day just below my limit.
it is hard and a fine balance all this 'cut your losses early stuff', i have started experimenting with the ATR for setting stops, but i dont wont to go back to old habits of generating a false sense of security by compensating poor entries with wide stops.
to be honest euro/dollar is my market of choice and would like to get back to spending the majority of my time focusing on this market, it is far superior technically and beleive that price action is somewhat smoother and less violent.
hi Joules
on the way down 4950 provided good support and then resistance.
now we are above that and i use that as pivot for november. above that minimum target 5050(5080) this was another ceiling on the way down as well.
indicators still pointing up on the dailies.
untill all stochs hit and turn down below 80 can't see any down moves.
but there is no guarantee of any kind in the market behaviour.
was short from 5100 and closed all @4800.
now slowly building longs. but below 4950 all bets are off.
appreciate all your efforts to educate us.
thank you
on the way down 4950 provided good support and then resistance.
now we are above that and i use that as pivot for november. above that minimum target 5050(5080) this was another ceiling on the way down as well.
indicators still pointing up on the dailies.
untill all stochs hit and turn down below 80 can't see any down moves.
but there is no guarantee of any kind in the market behaviour.
was short from 5100 and closed all @4800.
now slowly building longs. but below 4950 all bets are off.
appreciate all your efforts to educate us.
thank you
jiggly
Well-known member
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- 64
Livermore said:A daily limit of 25 "bad" ticks ? A good idea.Could you list all your trading rules? Please.
i am primarily a discretional trader, spending all my time watching price and volume and trying to identify changes in supply/demand.
the only rules i try my hardest to follow are to lose as little as possible, make as much as possible and have as many free trades as possible. ( quite obvious).
I try to be dynamic in my thinking and never fall into a trap of expecting the market to react a specific way because I beleive that it should given some price pattern, I try to be on top of all possible outcomes as price approaches key S/R levels. sometimes doing the opposite to your intial thoughts is better, ( if you are losing or are not consitantly profitable have you thought about taking an opposite position to your initial analysis, maybe you wouldnt lose as much, i thought about doing this in my early days)
I never go into a trade expecting it to work out, i am always willing to lose my 3 ticks so i dont hesitate in pulling the trigger if my intuition is telling me to take the trade. as price moves in my favour i will refer to a higher time frame and make a quick decision whether i will continue to risk 3 ticks for an even higher reward, protect my position to cover costs and walk away with the smallest possible gain or take whatever the market is offereing in the here and now and look to re-enter at an even better price.,
always always try to get the best possible fill in the direction i beleive the market is going over the intermediate/long term even if i have to pick a top/bottom on a smaller time frame, execution is everything for a 3 tick risk (outside bid/offer).
Never be sloppy, you are providing an edge to the competition.
these are pretty much my trading rules
Livermore said:
If only it were so simple. In my limited experience, it follows the ES except when it doesn't, the YM except when it doesn't and NQ except when it doesn't. Sometimes it leads and you can see bars form on 1min chart in advance of the ES or YM. Also moves may not be proportionate ie small move in ES but significantly larger move in DAX. Volatility seems to drop off after 6 PM CET, no doubt partially due to US lunch time.
Of course these observations are of no practical use at all except to warn that it should be traded in it's own right without too much reliance being placed on US futures ie trading signals for DAX shouln't come from US futures charts.
have to say my initial impression that the Dax follows the Dow/ S&P even in the short term..
does not seem to be the case..
certainly the dow over the medium erm has been more about occilating as opposed t the Dax sonce 2003
which has risen sharply
But even at the short term..with the exception of a runaway or breakaway on the Dow...tat seems to be aprtially mirrored initially
it does seem to beat to a differnt drum
Last 3 days of the dax (incl today so far) have posted essentially 3 dojis so I am waiting and seeing..
although last 30 mins have seen a bit of a rise inthe Dax but only to the top of the range
and presently attempting to break it
does not seem to be the case..
certainly the dow over the medium erm has been more about occilating as opposed t the Dax sonce 2003
which has risen sharply
But even at the short term..with the exception of a runaway or breakaway on the Dow...tat seems to be aprtially mirrored initially
it does seem to beat to a differnt drum
Last 3 days of the dax (incl today so far) have posted essentially 3 dojis so I am waiting and seeing..
although last 30 mins have seen a bit of a rise inthe Dax but only to the top of the range
and presently attempting to break it
Livermore said:
Don't know. (I said my experience was limited). All this intermarket stuff is difficult. Correlations undoubtedly exist for certain periods and then disappear for periods. Even the ES and NQ or ER2 can be remarkably uncorrelated sometimes. I guess you need to understand why. Obviously if the YM or ES go vertical, so will the DAX, but separating out leaders and followers isn't so easy.
Does anybody know if you can get free market breath indicators such as McClellen Summation Index and Oscillator and Bullish Percent Indices etc for any European Equities markets online ? I ask because these are looking potentially bullish for NYSE and NAS right now.
